Key equity indices edged higher on Wednesday after two consecutive sessions of sharp falls. The sentiment, however, was fragile as the rupee touched a fresh low, stoking fears of an interest rate hike by the central bank at its next meeting in October.

The Sensex rose 304.83 points or 0.81% to settle at 37,717.96. The index rose 339.45 points, or 0.91% at the day's high of 37,752.58. The index fell 71.13 points, or 0.19% at the day's low of 37,342.

The Nifty 50 index rose 82.40 points or 0.73% to settle at 11,369.90. The index rose 93.25 points, or 0.83% at the day's high of 11,380.75. The index fell 37.30 points, or 0.33% at the day's low of 11,250.20.

Drug major Sun Pharmaceutical Industries rose 2.98%. With reference to the media report, Sun Pharma's Mohali plant on FDA radar, the drug major clarified that the US Food and Drug Administration (USFDA) is conducting an inspection of the company's Mohali facility (Punjab, India). The inspection started yesterday, 10 September 2018 and is ongoing. The clarification was issued after market hours yesterday, 11 September 2018.

IT major Wipro rose 1.64%. Wipro and Duck Creek Technologies, the P&C insurance industry's leading SaaS software provider, announced a relationship whereby Wipro will offer a broad array of implementation services and related software and data solutions for its insurance industry customers around the world. Wipro will offer systems integration, configuration, and support services for the Duck Creek Platform, which includes solutions for policy, rating, billing, claims, data insights, and digital engagement. Together, Wipro and Duck Creek will help insurers meet rapidly evolving consumer expectations in their digital transformation journey. The announcement was made after market hours yesterday, 11 September 2018.

In the foreign exchange market, the rupee extended losses against the dollar. The partially convertible rupee was hovering at 72.055, compared with its close of 72.695 during the previous trading session. Rupee hit a low of 72.915 in intraday today.

Overseas, shares in Europe traded slightly higher on Wednesday, despite further tensions between the US and China surrounding trade.

Asian stocks fell on Wednesday, as investor confidence was chilled by the latest round of verbal threats in an intensifying US-China trade conflict. China will seek permission from the World Trade Organization (WTO) to impose sanctions on the US next week, according to the WTO's meeting agenda. China will seek authorization at a special meeting of the WTO's Dispute Settlement Body on Friday, 21 September 2018.

The request comes at a time of escalating trade tensions between the world's two largest economies, with US President Donald Trump saying last week he was ready to go on tariffs for another $267 billion on Chinese goods if he wants. That would follow planned charges on $200 billion of Chinese goods in several industries, including technology. Beijing has vowed to retaliate if the US takes any new steps on trade.

US stocks shrugged off a wobbly start to close higher Tuesday, with the Dow climbing by triple digits, as energy and telecommunications rallied. However, trade worries were simmering below the surface as investors continued to watch the situation between the US and China.

On the data front, small-business sentiment climbed to a record in August, according to the National Federation of Independent Business. Separately, the number of job openings in the US climbed to a record 6.94 million in July while the US budget deficit in August was $211 billion, nearly double the gap during the year-ago period.

Meanwhile, the US budget deficit in August was $211 billion, nearly double the gap during the year-ago month, the Congressional Budget Office estimated late Monday.

In the global commodities markets, Brent for November 2018 settlement was up 2 cents at $79.08 a barrel. The contract had risen $1.69 a barrel or 2.18% to settle at $79.06 a barrel during the previous trading session.